(MENAFNEditorial)
The export ban on raw minerals will significantl y impact production growth and hamper investment for Indonesia's mining industry. Although there is no imminent sign of the export ban being completely rolled back we believe ban moderation is on the cards in the coming quarters due mounting economic headwinds and practical consideration.
With the boom years in commodity prices behind us we believe more miners in Indonesia will be forced to put the brakes on investment over the coming quarters. The export ban on raw minerals will significantly impact financial growth in Indonesia's mining sector. In January 2014 the government implemented the ban on unprocessed minerals in order to stimulate smelter construction and increase mineral export value. However we believe that the export policy will have to be partially rolled back over the coming quarters in order to sustain mining growth. Key minerals such as copper nickel and bauxite are still a long way from having sufficient domestic refining capacity to soak up potential mine production.
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We believe Indonesia can't afford to risk souring investor sentiment in the face of falling commodity prices and rising economic headwinds. Stricter government regulations within the mining sector have arrived at an awkward time for the country. The regulations were implemented following an extended bull run in global commodity prices. Since the regulations were implemented Indonesia's external position has weakened considerably as prices of key exports such as coal have collapsed. The importance of the mining sector which accounts for around 12% of Indonesia's GDP and 20% of all foreign direct investment flows reinforces our conviction that the government will continue to incur significant costs by upholding the ban. We believe that these factors will persuade the government to moderate the ban over the coming quarters.
Furthermore new...
The Indonesia Mining Report has been researched at source and features Business Monitor International (BMI)'s mining and commodity forecasts for metals minerals and gems covering all major indicators including reserves production exports and values. The report also analyses trends and prospects national and multinational companies and changes in the regulatory environment.
BMI's Indonesia Mining Report provides industry strategists service companies company analysts and consultants government departments trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Indonesia.
Key Benefits
* Use BMI's independent industry forecasts on Indonesia to test other views - a key input for successful budgeting and planning in this mining market.
* Target business opportunities and risks in Indonesia's mining sector through our reviews of latest mining industry trends regulatory changes and major deals projects and investments in Indonesia.
* Assess the activities strategy and market position of your competitors partners and clients via our Company Profiles (inc. KPIs and latest activity) Key Projects Tables and Competitive Landscape Tables.
Coverage
BMI Industry View
Summary of BMI’s key forecasts and industry analysis covering mining reserves supply demand and prices plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT analysis
Analysis of the major Strengths Weaknesses Opportunities and Threats within the mining sector and within the broader political economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators supported by explicit assumptions plus analysis of key risks to the main forecasts. Indicators include:
* Mining industry: Industry size (USDmn) real growth (%) % of GDP employment (‘000) workforce as % of total workforce average wage (USD).
* Output: Production volumes (‘000 tonnes carats etc.) for all major metals minerals ores and gems mined in each state including bauxite copper gold coal lead silver tin titanium uranium zinc etc.
* Exports: Value of exports (USDmn) for all major metals minerals ores and gems mined in each state.
* Commodity markets: Global demand supply stocks and benchmark prices (USD) for aluminium copper lead nickel tin zinc gold and steel.
BMI’s Mining Risk Reward Index
BMI’s Risk Reward Indices provide investors (mining companies and support service providers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry economic and demographic data points to provide indices of highest to lowest appeal to investors with each position explained.
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing USD sales % share of total sales number of employees year established market cap/NAV ownership structure production and % market share.
Key Projects
Details and analysis of all current and planned developments (new ventures capacity expansion and other investments) across the sector broken down by metal/ore.
Company Profiles*
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles enabling a full evaluation of recent company performance and future growth prospects.
Sources
The Mining reports are based on an extensive network of primary sources such as multilateral organisations (UN WB IMF) national chambers of commerce and industry national statistical offices government ministries and central banks and multinational companies.
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